- CPI data Tuesday could spark major moves
- Tariff uncertainty remains the biggest overhang
- Cash and bonds are gaining appeal over equities
Markets are walking on a tightrope this week. And it’s not just because of the inflation data.
Yes — April CPI drops Tuesday, and if the print surprises to the upside, expect volatility to spike. The Fed is stuck in “wait and see” mode, and Powell made that clear last week, repeating the phrase 12 times in 45 minutes. Translation: no help is coming.
But here’s the real driver?
Trade war roulette.
Trump’s latest tariff threats in early April crushed the S&P 500 — it dropped nearly 19% in 6 days. Since then, some proposals were watered down, and the market bounced back.
Still, smart money isn’t buying the “all clear.”
Yields around 4–5% on cash and bonds?
That’s tempting when stocks feel unstable and earnings guidance is a mess.
This week’s CPI may hit the markets hard — but it’s the trade headlines that will set the tone. Keep your stops tight.
